How Does Indeed Make Money? The Indeed Business Model In A Nutshell

Indeed is a job listing employment website co-headquartered in Austin, Texas, founded in 2004 by Paul Forster and Rony Kahan. Indeed makes money via sponsored posts, Indeed Resume (Standard and Professional plan), targeted ads, and the Indeed Hiring Platform.

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Origin Story

Indeed is a job listing employment website co-headquartered in Austin, Texas, and Stamford, Connecticut.

The company was founded in 2004 by Paul Forster and Rony Kahan.

In 2005, the pair released a beta version of the platform and described it as a pay-per-click (PPC) job advertising network.

Indeed also tracks the popularity of words over time to identify new trends in the job market.

In recent years, the company has made several acquisitions. In 2019 it acquired Syft – a major recruitment platform in the UK for the industrial, event, and hospitality sectors.

In the same year, Indeed also acquired the automated job advertisement platform ClickIQ.

Indeed is now the most popular job website in the world, attracting 250 million unique monthly visitors with 10 new jobs posted every second.

Indeed’s Value Proposition:

Extensive Job Listings: Indeed provides access to a vast database of job listings from various industries and locations, offering job seekers a wide range of opportunities.
User-Friendly Interface: The platform offers a user-friendly and intuitive interface that allows job seekers to easily search for jobs, create profiles, and apply for positions.
Global Reach: Indeed’s global presence and popularity make it a valuable resource for job seekers and employers worldwide, facilitating international job searches.
Customized Job Alerts: Job seekers can set up personalized job alerts based on their preferences, ensuring they receive notifications about relevant job openings.
Employer Tools: Indeed offers a suite of tools and services for employers to promote their job listings, connect with potential candidates, and streamline the hiring process.

Customer Segments:

Job Seekers: Individuals actively seeking employment, including recent graduates, professionals, and individuals looking for career changes or job opportunities in various industries.
Employers: Businesses of all sizes, from small local companies to large multinational corporations, seeking to hire talent for their job openings.

Distribution Strategy:

Website: Indeed’s website is the primary platform for both job seekers and employers to access its services. It offers a comprehensive job search and application experience.
Mobile Apps: Indeed offers mobile applications for iOS and Android devices, allowing users to search for jobs, create profiles, and apply for positions on their smartphones and tablets.
Email Alerts: Job seekers can receive customized job alerts via email, directing them to relevant job listings and opportunities.

Marketing Strategy:

Search Engine Optimization (SEO): Indeed optimizes its website to rank high in search engine results for job-related queries, increasing its visibility to job seekers.
Online Advertising: The company invests in online advertising to promote its services to a broader audience. It utilizes paid search advertising, display ads, and social media advertising.
Content Marketing: Indeed produces blog posts, articles, and resources related to job search, career development, and workplace trends to engage and educate its audience.
Email Marketing: Indeed sends regular email updates, job alerts, and newsletters to job seekers, encouraging them to stay active on the platform.
Partnerships: Indeed collaborates with educational institutions, government agencies, and industry associations to expand its reach and provide job search resources to students and job seekers.
Employer Services: Indeed offers a range of paid services to employers, including sponsored job postings, targeted advertising, and hiring platform solutions. These services generate revenue and help employers find qualified candidates.

Indeed revenue generation

The Indeed platform of free of charge for job searchers, so the company instead charges businesses for the privilege of listing vacant positions.

With so many jobs posted daily, an individual listing can quickly become buried among thousands of similar search results.

Therefore, Indeed allows recruiters to increase their visibility via several paid tools.

We will have a look at these tools and some other revenue streams below.

Indeed Resume

Job seekers can upload their résumé to Indeed where it can be found by recruitment staff.

However, Indeed charge a monthly subscription fee for the privilege. There are two plans:

Standard – for businesses making a few hires, Indeed charges $100/month for 30 contacts. Here, contacts are defined as interactions between an employer and a job seeker.
Professional – for larger businesses who require more interaction, Indeed charges $250/month for 100 contacts. There are also additional tools such as bulk messaging and Indeed’s Hiring Insights analytics.

Targeted ads

In addition to sponsored ads, employers can also use targeted ads that can be displayed across various parts of the Indeed website.

While Indeed does not publicly disclose the prices for targeted ads, it is likely to be based on the location the ad occupies and how long it runs for.

Indeed Hiring Platform

Indeed also offer automated recruitment technology, allowing businesses to conduct virtual hiring events to fill multiple positions. Interviewees satisfying the relevant criteria are invited to attend events, which Indeed argues streamlines the entire recruitment process.

Again, prices for this holistic service are undisclosed. But they are based on the geographic location, job demand, and the number of job seekers targeted. There is also likely to be a one-time fee for hosting the event itself.

Key takeaways:

Indeed is a job listing employment website founded by Paul Forster and Rony Kahan. The platform borrows aspects of Google PPC advertising and search-based ad placement.
Indeed is free to use for job seekers. Instead, revenue generation is primarily focused on an increasing job listing visibility for employers.
Indeed also offer a range of ancillary services. Indeed Resume allows businesses to access a database of job seeker résumés. The Indeed Hiring Platform gives employers an automated, all-in-one solution to attracting, interviewing, and then hiring suitable candidates.

Element	Description
Value Proposition	Indeed offers a compelling value proposition for its users, including: – Job Search: A vast and comprehensive database of job listings from various industries and locations. – Free Access: Providing free access to job seekers to search and apply for jobs. – User-Friendly Interface: A user-friendly website and mobile app for job searching. – Customization: Personalized job alerts and recommendations. – Global Reach: Access to job opportunities worldwide. – Company Reviews: Access to employee reviews and company insights. – Salary Information: Providing salary data and comparisons. – Resume Builder: Tools to create and upload resumes. – Interview Tips: Resources and guidance for job interviews. – Recruitment Solutions: Tools and services for employers and recruiters to find the right candidates.
Core Products/Services	Indeed’s core products and services encompass: – Job Search: Providing a search engine for job listings across various industries and locations. – Resume Database: Offering access to a database of resumes for employers. – Company Pages: Hosting company profiles and reviews to help job seekers evaluate potential employers. – Resume Builder: Tools for job seekers to create and upload resumes. – Job Alerts: Customized job alerts delivered to users’ emails or mobile devices. – Salary Insights: Offering salary data, comparisons, and job market trends. – Indeed Assessments: Providing pre-employment skills testing for employers. – Sponsored Job Listings: Paid job listings for employers to boost visibility. – Recruitment Advertising: Offering advertising solutions for employers to attract talent. – Hiring Events: Hosting virtual and in-person job fairs and events.
Customer Segments	Indeed serves a range of customer segments, including: – Job Seekers: Individuals actively looking for employment opportunities. – Employers: Businesses and organizations seeking to fill job vacancies. – Recruiters: Professional recruiters and staffing agencies assisting in talent acquisition. – HR Professionals: Human resources professionals and managers involved in the hiring process. – Educational Institutions: Schools and universities offering career services to students and alumni. – Advertisers: Businesses and recruiters using sponsored job listings and advertising services. – Job Boards: Partnering with other job boards and websites for job distribution. – Government Agencies: Collaborating with government agencies for job placement services. – Nonprofits: Partnering with nonprofit organizations focused on workforce development.
Revenue Streams	Indeed generates revenue through various revenue streams: – Pay-Per-Click Advertising: Charging employers and advertisers on a per-click basis for sponsored job listings and display ads. – Featured Employer: Offering enhanced profiles and branding opportunities for companies. – Subscription Plans: Providing subscription-based employer accounts with premium features. – Resume Database Access: Charging employers for access to the resume database. – Hiring Events: Earning revenue through fees from employers participating in virtual and in-person hiring events. – Indeed Assessments: Charging employers for skills assessments and testing services. – Sponsored Job Listings: Earning revenue from employers boosting job listings’ visibility. – Recruitment Services: Offering specialized recruitment solutions for employers. – Job Advertising: Providing paid advertising services for businesses to promote job openings. – Education Partnerships: Collaborating with educational institutions for job placement services.
Distribution Strategy	Indeed employs a strategic distribution strategy to connect job seekers and employers: – Website and Mobile App: Providing a user-friendly platform for job searching and application. – Job Alerts: Offering customized job alerts delivered via email and mobile notifications. – Resume Upload: Allowing users to create, upload, and manage resumes on the platform. – Email Marketing: Sending job recommendations and updates to registered users. – Partnerships: Collaborating with other job boards, educational institutions, and government agencies for job distribution. – Employer Services: Providing tools and services for employers to post job listings and access resumes. – SEO and SEM: Optimizing search engine visibility for job listings. – Social Media: Utilizing social media platforms to promote job opportunities and engage with users. – Content Marketing: Creating informative content related to job searching and career development. – Customer Support: Offering assistance to job seekers and employers through customer support channels.